The 30-share index, which had gained 546.97 points in the previous two sessions, rose by 105.71 points, or 0.37 percent, at 28,610.17, with healthcare, capital goods, consumer durable, oil & gas, FMCG and IT sector stocks, leading the rise.

On similar lines, the National Stock Exchange index Nifty was up by 22.50 points, or 0.26 percent, at 8,682.40. Brokers said besides a firming global trend, selective buying by funds and retail investors ahead of RBI's monetary policy to be announced later in the day, influenced market sentiments.

Among other Asian markets, Japan's Nikkei was trading higher by 1.15 percent in early trade on Tuesday, while financial markets in Hong Kong are closed on Tuesday for a public holiday. The US Dow Jones Industrial Average ended 0.66 percent higher in Monday's trade.